CAI applauds the efforts of the U.S. Congress and President Obama

CAI applauds the efforts of the United States Congress and President Obama to reverse extreme flood insurance rate increases enacted by the Biggert-Waters Flood Insurance Reform Act of 2012. On March 21, 2014, President Obama signed into law the Homeowner Flood Insurance Affordability Act (H.R. 3370). 

“The Obama Administration realized the negative effects that Biggert-Waters would have had on community association homeowners. Although well intended, Biggert-Waters reforms would have created an unmanageable situation for some homeowners. Although CAI supports a National Flood Insurance Program that is not subsidized by American taxpayers, Biggert-Waters created a situation where community association homeowners and residents were facing exorbitant increases in flood insurance premiums that called into question the ability to insure homes and common property,” said Dawn M. Bauman, CAI’s Senior Vice President of Government and Public Affairs.

H.R. 3370 provides direct relief to homeowners facing exorbitant increases in flood insurance premiums as a result of the Biggert-Waters Flood Insurance Reform Act of 2012. The Biggert-Waters Act required that all flood insurance policies transition to actuarial premiums. As a result, many homeowners across the country faced flood insurance premium increases of more than 500 percent, calling into question the ability to maintain flood insurance coverage.

The legislation provides a more sustainable flood insurance premium structure that will lead to more homes and businesses being covered by flood insurance. H.R. 3370 also improves flood zone mapping procedures and imposes a fee on policyholders whose premiums do not reflect actual flood risk.

“President Obama’s decision to sign H.R. 3370 into law successfully completes months of bipartisan effort in Congress. CAI applauds the hard work of all involved parties to protect the needs of homeowners and community associations while securing the future of the National Flood Insurance Program,” said Bauman.

For additional information on H.R. 3370, click here.

FAIRNESS IN DISASTER RELIEF FOR COMMUNITY ASSOCIATIONS AND THEIR HOMEOWNERS

In a related issue, U.S. Representative Steve Israel sent another letter to Federal Emergency Management Agency (FEMA) Administrator William Fugate regarding fairness in disaster relief for community associations and the lack of eligibility for housing cooperatives and condominium associations to apply for federal disaster assistance through FEMA. The full letter can be read here.

The Consolidated Appropriations Act for Fiscal Year 2014 requires FEMA to report to the House Appropriations Committee, House Committee on Transportation and Infrastructure, and the Senate Committee on Homeland Security and Governmental Affairs on how to make cooperatives and condominium associations eligible for federal disaster assistance.

In presidentially-declared natural disasters community associations face high recovery costs while local governments are denied reimbursement for debris removal and other disaster recovery expenses in community associations. CAI continues to work with members of congress to seek fairness in federal disaster relief for all homeowners in community associations.

If you have any questions or comments regarding changes to federal flood insurance or CAI’s continued advocacy efforts to obtain fairness in federal disaster relief for community associations, please contact CAI Government Affairs at government@caionline.org or (888) 224-4321.

CAI Government Affairs represents the interests of the 62.5 million people living and working in America’s community associations on legislative and regulatory issues at the local, state, and federal level of government.

Community Associations Institute (CAI) | 6402 Arlington Blvd., Ste 500, Falls Church, VA 22042 | www.caionline.org | 888.224.4321

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